Tietto Minerals Ltd Secures Up To $ 140 Million In Debt Financing To Build West Africa’s Next Gold Mine At Abujar

The company is focused on accelerating the development of the Abujar gold project, targeting the first gold in the December 2022 quarter.

Tietto Minerals Ltd (ASX: TIE) has secured debt financing of up to US $ 140 million to build West Africa’s next gold mine at the Abujar project in Côte d’Ivoire.

The company commissioned Taurus Mining Finance Fund No.2 LP, a dedicated resource fund manager, to provide an underwritten project development facility in the amount of between US $ 130 million and US $ 140 million over a loan period of five. years.

Promisingly, Tietto is well funded and is targeting first gold at Abujar in the December 2022 quarter.

“A certainty for the shareholders”

Tietto Chief Executive Officer Dr Caigen Wang said, “Obtaining financing with Taurus provides security for shareholders and occurs within six weeks of delivery of Abujar’s DFS.

“We are extremely happy to be working with Taurus, who can provide the necessary funds on time.

“Our experienced project construction team has moved the initial work forward and is now confident that the debt financing will be in place as they proceed with the major work needed to develop the Abujar gold project into the next gold mine in West Africa.”

Debt financing

Tietto commissioned Taurus to provide a secure project finance facility to be used to finance the development of Abujar.

Taurus will endeavor to finalize its due diligence on the project before providing a committed financing offer.

While the full financing conditions are confidential, the key points are:

  • Project loan facility in the amount of between US $ 130 million and US $ 140 million;
  • Five-year loan facility with repayments starting June 30, 2023;
  • The usual debt covenants for a facility of this type and reflect the competitive nature of the current market;
  • Mandatory gold coverage required;
  • Early repayment is allowed at any time without penalty; and
  • Security to be provided by warranty.

The conclusion of definitive financing agreements remains subject to due diligence, documentation and other conditions precedent customary for financing of this nature.

Abujar final feasibility study

Abujar Definitive Feasibility Study (DFS) demonstrated strong financial results and estimated first year gold production of 260,000 ounces and 200,000 ounces per year in the first six years of its life from the Abujar mine, a 5% NPV of A $ 1.3 billion (before tax) and A $ 0.97 billion (after tax) using US $ 1,700 per ounce and one Australian dollar / USD = 0.74.

For DFS total US $ 200 million investments, the US $ 8.65 million preliminary works program is nearing completion, including initial engineering and design (FEED), site construction and the camp.

Tietto is well funded, with around A $ 32.8 million in cash in the bank at the end of September 2021, and plans up to an additional A $ 10 million when exercising options by the end of December 2021.

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